Tech enthusiasts and Apple loyalists are anticipating the arrival of the iPhone 14 lineup this year, but there are rumors that the prices of the phones will skyrocket. Although nothing is set in stone, people will have to wait until mid-September to find out if the rumors are true.
Many speculate that the drastic cost increases are the result of Apple’s component suppliers, and sentiments of the surge only escalated when companies in the iPhone supply chain indirectly confirmed that the company would share some of the rising costs of manufacturing iPhones this year.
The Japanese company Showa Denko K.K. is known for providing chip manufacturing to chip maker TSMC, which produces custom A and M series chips in Apple devices.
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The company is responsible for the A15 chips in the iPhone 13 models and will produce the A16 chips in the upcoming lineup. However, due to COVID-19 lockdowns, wars, and the declining value of the yen, Showa Denko has reportedly been forced to raise its costs repeatedly.
Chief Financial Officer Hideki Somemiya told Bloomberg that the company had no choice but to increase the costs it passed on to customers.
“A big theme this year common to all the players in the materials industry is how much cost burden we’d be able to convince customers to share with us,” he explained.
“The current market moves require us to ask twice the amount we had previously calculated.”
As TSMC passes on cost increases to Apple, iPhone 14 prices could be increased.
iPhone 14 prices
According to reports, Apple will take two steps to increase the cost of the iPhone 14 series. Since last year, rumors have been circulating that the iPhone mini range will be discontinued after 13 and replaced by the 6.7-inch iPhone 14 Plus / Max; the device is said to cost around $899.
The regular iPhone 14 will likely hold its $799 price tag.
Meanwhile, the Pro models will increase with a starting price of $1,099. The cheapest iPhone 14 Pro Max would also cost $1,199.
Years earlier, Apple and wireless carrier partners used a pricing strategy for base models where buyers could get a $ 30 discount at checkout by closing deals with the carrier. As a result, the actual sticker prices of the iPhone 13 and 13 mini are $729 and $829, respectively.
Provided the company is still using the cost-cutting strategy for the upcoming iPhone 14, the cheaper models could start at $829 and $929.
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Opinions expressed by CEO Weekly contributors are their own.
